What should appear on a tax receipt?
The Canada Revenue Agency (CRA) provides templates to guide you in what information should appear on a tax receipt (donation receipt). In addition to showing what basic identification information about the charity and donor should appear, the CRA provides ‘4 flavours’ of sample receipts:
- Cash gift (no advantage) – The most common scenario, this receipt acknowledges the full cash amount donated (e.g. $20 donation = $20 tax receipt).
- Cash gift with advantage – This receipt is issued for only the eligible amount of the cash donation – the full amount minus the amount of the advantage, or what the donor receives in exchange for the gift (e.g. a $50 donation to attend a fundraising lunch for which meal is valued at $20 receives a tax receipt for $30). The full gift amount, the advantage value, and the eligible amount are all noted on the tax receipt.
- Non-cash gift (no advantage) – This receipt includes the appraised value of a non-cash item donated to a charity (e.g. a donation of an artwork appraised at $1500 receives a tax receipt for $1500).
- Non-cash gift with advantage – This receipt is issued for only the eligible amount of the non-cash donation – the full amount minus the amount of the advantage, or what the donor receives in exchange for the gift (e.g. if an individual donates a house valued at $100,000 but receives $20,000 cash in return, the tax receipt is issued for $80,000). The full gift amount, the advantage value, and the eligible amount are all noted on the tax receipt).
Visit this page on the CRA website to view sample receipts. Remember, these are guides. They are intended to show you what relevant information needs to appear, but you can format yours differently and brand it for your own organization.